Homeplus Files Immediate Appeal After Securing 200 Billion Won, Keeps Reorganization Hope Alive

[Financial News] Homeplus, which had been pushed to the brink after the court moved to terminate its rehabilitation proceedings, filed an immediate appeal after securing a debtor-in-possession, or DIP, loan. The court will now reconsider the decision to end Homeplus's rehabilitation process. With 200 billion won in funding secured, attention is focused on whether the court will approve Homeplus's rehabilitation plan.
Homeplus submitted the appeal to the Seoul Bankruptcy Court on the 20th.
The deadline for filing an immediate appeal was that day, and Homeplus managed to submit the appeal at the last minute, giving the court another chance to review the case. The filing reportedly seeks to overturn the termination decision under the principle of "renewed consideration," a term used by the panel when it issued the ruling.
When the court decided on March 3 to terminate Homeplus's rehabilitation proceedings, it also left open the possibility of reconsideration if the company secured 200 billion won in DIP financing and filed an appeal. Because the court based its finding that the rehabilitation plan could not be carried out on a lack of operating funds, the idea was that if the money was raised, the court could revoke the termination itself and give Homeplus another chance without sending the case to a higher court.
Afterward, Homeplus's largest shareholder, MBK Partners, and its largest creditor, Meritz Financial Group, reached a last-minute agreement on the 16th, successfully securing the funds.
If the court accepts the immediate appeal, it will overturn the existing decision to terminate the rehabilitation proceedings and resume the process. In that case, the deadline for the rehabilitation process will be extended to September 4. After the court's ruling, Homeplus will work with partner companies to set a schedule for reopening stores that are currently temporarily closed.
Once the court's approval, the execution of the DIP loan, and consent from major creditors to the rehabilitation plan are all completed, the 200 billion won DIP financing will be fully disbursed. After the court approves the rehabilitation plan, Homeplus will move forward with repayment and other steps under the plan. If the court determines that there is no obstacle to doing so, the company will enter the final stage of rehabilitation.
If the court does not accept the immediate appeal, Homeplus is expected to enter bankruptcy proceedings immediately.

[email protected] Jung Kyung-soo Reporter